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Gross profit slipped to 37% of sales from 36% a year ago, due to costs associated with opening a new distribution center.

Ulta opened 45 new stores, bringing its base to 860 locations, up from 774 at the start of the year.

Net profit margin slipped to 7.8% from 7.9%. But profitability is still improving on a year-to-date basis, rising from 7.7% to 8% through the first three quarters of the year.

What management had to say"Ulta Beauty's excellent performance in the third quarter was highlighted by top line momentum driven by double digit traffic growth, leading to above-plan earnings growth," CEO Mary Dillon said in a press release. Executives believe their marketing, branding, and product assortment efforts are paying off, and they're particularly excited about a loyalty program that now boasts 17 million active members.

Image source: Ulta Beauty.

"Delivering against our six strategic imperatives continues to drive our business forward," Dillon said. The clearest indication that these initiatives are working is customer traffic. "Our efforts to build awareness of the Ulta Beauty brand," Dillon said, "are bringing more guests to discover our differentiated [product] assortment."

Looking forwardUlta issued a significant hike to its full-year sales and profit outlook. Dillon and her team now see comps growth clocking in at between 10% and 11%, compared to the 8% to 10% they had forecast last quarter. For investors keeping track, that marks the third straight time this year that Ulta has raised its comps guidance (the company began 2015 targeting 7% comps growth).

Earnings are now expected to grow by at least 20% -- up from the high teens percentage range Ulta pegged last quarter. Dillon said the sales and profit outlook boosts were driven by improving business momentum. "As a result of our financial performance in the third quarter and our position of strength heading into the holiday season, we are raising our guidance," she said.